EUR/JPY Price Analysis: Cross gains ground with subtle consolidation signs

The daily RSI is pointing upwards, hovering around 70, but continuing red bars in the MACD show a trailing consolidation.
On the hourly chart, indicators are neutral and reside in the positive terrain.
The 20-day SMA at 169.00 serves as an important threshold for sellers.

Patricio Martín FXStreet

On Friday's trading session, despite recent downside corrections, the EUR/JPY pair managed to reclaim its stance above 170.00. This indicates a shifting of the bearish momentum observed on Thursday when the pair marked a daily low at 169.00.

The daily Relative Strength Index (RSI) has pivoted, now pointing upwards near 70, suggesting a possible reversal. However, the MACD is still printing red bars, confirming that the pair is in a consolidation phase with limited upside. These mixed signals necessitate following the pair closely to determine if this marks a fresh bullish momentum or merely a pause in a more pronounced downward correction.

EUR/JPY daily chart

On the hourly chart, indicators are maintaining their neutrality, inhabiting the positive territory. This could potentially point to a subtle strengthening of bullish sentiment despite the ongoing consolidation phase.

EUR/JPY hourly chart

Critically, the position of the EUR/JPY pair continues to hover above the significant SMAs. The 20-day SMA at 169.00 in particular stands out as a crucial threshold and sellers must conquer this level to flip the near-term bullish outlook. Should the position fall below this key support level, the 100 and 200-day SMAs provide further safety barriers for potential sellers.

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

EUR/USD weakens as US jobs data trims Fed rate cut bets

The EUR/USD pair trades in negative territory for the third consecutive day near 1.1860 during the early European session on Thursday. Traders will keep an eye on the US weekly Initial Jobless Claims data. On Friday, the attention will shift to the US Consumer Price Index inflation report.

GBP/USD bullish outlook prevails above 1.3600, UK GDP data looms

The GBP/USD pair gains ground near 1.3635, snapping the two-day losing streak during the early European session on Thursday. The preliminary reading of UK Gross Domestic Product for the fourth quarter will be closely watched later on Thursday. The UK economy is estimated to grow 0.2% QoQ in Q4, versus 0.1% in Q1.

Gold remains on the defensive below two-week top; lacks bearish conviction amid mixed cues

Gold sticks to modest intraday losses through the Asian session on Thursday, though it lacks follow-through selling and remains close to a nearly two-week high, touched the previous day. The commodity currently trades above the $5,070 level, down just over 0.20% for the day, amid mixed cues.

UK GDP set to post weak growth as markets rise bets on March rate cut

Markets will be watching closely on Thursday, when the United Kingdom’s Office for National Statistics will release the advance estimate of Q4 Gross Domestic Product. If the data land in line with consensus, the UK economy would have continued to grow at an annualised pace of 1.2%, compared with 1.3% recorded the previous year.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.